The Relationship Between Top Management Team Diversity and Firm Innovation Output: A Meta-Analysis

Abstract

We conduct a meta-analysis on the relationship between top management team (TMT) task-related diversity and firm innovation output. Empirical evidence from 74 primary studies containing 25,968 firm observations shows that TMT task-related diversity has a positive relationship with innovation output. Building on this finding, we demonstrate that TMT task-related diversity has a positive association with radical innovation, but not with incremental innovation output. Moreover, we find positive relationships between TMT task-related diversity and innovation output quantity as well as innovation output quality. In some additional analyses, we further show that TMT bio-demographic diversity is not related to firm innovation output. Thus, it seems that diversity in expertise, skills, and knowledge are important for fostering innovation in firms. The study contributes to research on the TMT diversity-firm innovation relationship. Based on the findings, we develop opportunities for future research.